Economic growth across Dublin remained robust between January and March, new data shows.
The latest Dublin Economic Monitor reveals that business activity increased, unemployment fell and retail spending was strong.
The Dublin S&P Global Purchasing Managers' Index (PMI) reading rose to to 53.1, from 51.9 in the final quarter of last year.
On a sectoral basis, growth in activity was driven by an acceleration in the dominant services sector.
The report published this morning by the four Dublin Local Authorities shows that the construction sector returned to growth following a weak final quarter of 2023.
Meanwhile, activity levels in Dublin’s manufacturing sector dipped marginally below the 50 mark in the first quarter of this year.
Dublin's unemployment rate fell to 4.8% in the first quarter, as employment continued to increase reaching a new peak of 812,800 - despite a receding of job postings in the Dublin economy.
According to MasterCard data, retail spending in Dublin continued on an upward path in early 2024 despite the lingering effects of inflation, and relatively high interest rates.
Expenditure by consumers in the Capital rose by 0.9% on the previous quarter and 2.9% on the same time last year - with broad growth across most categories.
In the residential sector, housing completions contracted sharply in the first quarter, falling by 35% on the final quarter of 2023, and by over 25% year-on-year.
However, new residential commencements recorded sustained growth of 8.6% on the previous quarter and 58.2% year-on-year.
This will be expected to feed through to greater completions later in 2024 and into 2025.
Despite rising supply, average residential rents in Dublin rose above €2,000 for the first time in the third quarter of last year and grew further to €2,035 in the final quarter of the year.
Based on a rolling four quarter average, foreign direct investment (FDI) into Dublin declined in the first quarter of the year.
The average capital investment fell by 15% on the previous quarter and 53.4% year-on-year to $622 million.
"The economic mood is more upbeat heading into the second half of 2024," said Andrew Webb, Chief Economist with Grant Thornton.
"Forecasters are lifting their expectations for growth now that inflation appears to be under control.
"Improvements in global trade, continued strength in the labour market and interest rate cuts on the horizon are all adding to a renewed positivity," he added.
